Sometimes back Wired published an article asking if data the new oil. Within this century that is the 21st Century, data is certain to replace oil just like oil replaced coal in the 19th century. Data is immensely valuable, but it is an untapped asset which has not yet been fully exploited. Those who will develop the means to discover data wells, systems for refining the data and extracting valuable information from the data wells will leap immense rewards. This is because in the twenty first century we are operating in the digital economy where the data is highly valuable and a necessity to the digital enterprises. It is the engine that will power the digital enterprises in the same manner the coal powered engine powered the steam engine. The need for data is not going to be restricted to the private and digital enterprises, data will even be more valuable to governments which will need it for efficient public service provision.
Data Infrastructure Should Become a Profit engine of the business
Many organizations view their data centers as a cost and expenses which they can find ways of eliminating. However, data infrastructure is very important to the future of digital enterprises and organizations should view their data center as the new profit center. Companies have to view their data as a strategic company asset that has immense value to the company. The asset should therefore be protected and managed affectively so as to realize its value.
Effective management of the company data is essential for companies as this can enable the company to extract customer data as well as share the data about products and services with partners and producers so that they can customize product to suit customer tastes and preferences. The data also provides companies with opportunities to recombine information and ideas about products and services and thereby bringing into life new products and services that resonate with the target market.
Data enhances decision making
Data provides the evidence that is needed in instances where critical decisions have to be made. Data helps the business to stop relying on heresy and opinions during decision making. Data provides concrete evidence that can help the business make better choices that can make the business more profitable. During the growth phase of the business, opinions tend to dominate, but as the business grows, opinions have to be set aside. It pays to use data in decision making. This is because with data, any decision about the business be it marketing, human resource management, can be made by testing, measuring different alternatives and making improvements. The use of data can inspire the business to come up with new ideas, identify new opportunities and trends and take advantage of such opportunities before competitors seize the moment. Most importantly the business owner should know the KPIs of the business and develop infrastructure for collecting refining and developing insights about these KPIs. Different businesses have different KPIs. Retail businesses have different KPIs from the non-retail and software business. Understanding your KPIs helps you to focus on collecting and refining data which is relevant to your business and make most of that data.
Thank you for reading my blog. I hope you will make deliberate effort to collect data from your business and use it to guide your decision making.